- By Shivangi Sharma
- Wed, 05 Mar 2025 08:37 PM (IST)
- Source:JND
Canada has formally requested consultations with the United States at the World Trade Organisation (WTO) over what it describes as “unjustified tariffs.” The request was confirmed by Canada’s ambassador to the WTO in Geneva, Nadia Theodore, who emphasised that Ottawa had no choice but to take action in response to Washington’s trade measures.
Ambassador Theodore announced the move on LinkedIn, stating, “The US decision leaves us with no choice but to respond to protect Canadian interests.” A WTO spokesperson also confirmed that Canada’s request for consultations had been received.
In a strong rebuke, Canadian Prime Minister Justin Trudeau criticised former U.S. President Donald Trump’s tariffs on Canadian imports, calling them “a very dumb thing to do.” Trudeau announced that Ottawa would immediately impose 25 per cent retaliatory tariffs on C$30 billion worth of US imports. If the dispute remains unresolved, Canada plans to target an additional C$125 billion in American goods within the next 21 days.
WTO Dispute Resolution Process Begins
A trade official from the WTO confirmed to AFP that Canada had initiated dispute proceedings against the United States over the additional tariffs. The consultation process is the first step in the WTO’s dispute resolution mechanism, allowing both parties to negotiate a solution.
If no agreement is reached within 60 days, Canada will have the option to request a formal adjudication by the WTO. The trade body plays a crucial role in regulating global trade and ensuring that its members comply with international trade rules.
Escalating Trade Tensions
This latest trade dispute marks another flashpoint in the longstanding economic tensions between Canada and the US. Over the years, both countries have engaged in multiple trade disputes, particularly concerning aluminum, steel, and softwood lumber.
While Ottawa has repeatedly sought diplomatic solutions, it has also demonstrated its willingness to take retaliatory measures to protect its economic interests. The new tariffs imposed by Canada signal that it is prepared to escalate the matter further if Washington does not reconsider its position.
